Extra-financial rating agency
Extra-financial rating agencies were first founded about fifteen years ago to rate the environmental, social and governance (ESG) practices of companies and states not captured by standard credit rating agencies. Extra-financial rating agencies generally use a variety of sources: companies themselves (documents available to the public, targeted surveys and meetings), stakeholders (NGOs, unions, and government bodies), and the media. No universal sustainable development standard currently exists. Hence evaluation criteria employed vary from agency to agency. That said, all agencies generally refer to existing primary international agreements and consider environmental, social and governance issues. Unlike credit rating agencies, extra-financial rating agencies earn their living from investors not issuers.